Interpretations of Brazil and Global Capitalism
by Victor Coutinho Lage
By Briseida Valencia Soto, Research Associate at COHA
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Mexico's disenfranchised often see the illicit drug economy as an escape route from poverty. Mexican drug cartels post annual gains between approximately $18 and $39 billion USD.[1] For Mexico's poorest, the promise of quick and exorbitant profits is often too enticing to pass up. To put the allure of the drug trade into context, take for example the juxtaposition between Mexico's drug and crude oil economies: In 2014, crude petroleum, Mexico's primary export, was worth $37 billion, an estimated $3 billion less than the illicit drug economy's worth at its highest value.[2] The oil industry, which until recently was controlled by PEMEX, the national oil company, employed 151,000 workers in 2013.[3] In the early 1990s, the Sinaloa Federation, the largest and most powerful cartel conglomerate at the time, employed an estimated 100,000 individuals.[4] While PEMEX's 2014 workforce is somewhat larger, it is important to consider that the Sinaloa Federation was only one of dozens of Mexican drug trafficking organizations (DTOs) in the 1990s. As such, it is logical to conclude that the illicit drug economy in the '90s offered employment to a massive workforce. Since the '90s, Mexico's drug industry has only grown in scale. To make matters worse, the narcotics industry, while far riskier than the formal economy, offers Mexico's poor viable work opportunities. Recently, the spike in heroin use in the United States (a 90 percent increase between 2002 and 2013)[5] has contributed to a boom in production and illicit employment opportunities. Moreover, because of the state's failure to suppress the drug economy, the drug business has taken on a veneer of folkloric invincibility that contributes to its attractiveness. |
Political Report # 1136
Brazilian Politics, Players, Panama and Perpetual Motion
By Nomi Prins, Nomi Prins' Website
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There is no simplifying Brazil's political or economic situation. Anyone "certain" about the outcome is sure to get smacked in its crossfires sooner or later. Corruption might be bi-partisan in the United States, legalized in many cases, but in Brazil, it's the full multi-party monty. Eduardo Cunha, the Lower House speaker gunning for President (and political rival) Dilma Rousseff's impeachment, has just been fingered by the Panama Papers for stashing millions in Switzerland.
He was also under Carwash corruption investigations. No one so tainted, should risk throwing stones so blithely at a sitting, elected president. Brazil's new Attorney General, Jose Eduardo Cardozo, said as much, yesterday, on the grounds there are no legal reasons to impeach her, and that doing so would be to "rip up the constitution."
The domestic and international implications associated with Brazil's internal turmoil transcend the walls of the Planalto Palace in Brasilia, a planned city that belies its far less organized and cohesive government.
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